Harrah's Entertainment Reports Results for 2009 Fourth Quarter, Full-Year

26 February 2010

LAS VEGAS, Feb. 25 /PRNewswire/ -- Harrah's Entertainment, Inc. today reported the following financial results for the 2009 fourth quarter and full year:

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    HARRAH'S ENTERTAINMENT, INC.    Company-wide Results                                                                                                 Fourth Quarter      Percent                                       --------------      Increase/    (In millions)                     2009        2008    (Decrease)                                      ----        ----    ----------    Net revenues                    $2,099.1    $2,278.4     (7.9)%    Income/(loss) from     operations                        150.7    (5,348.0)     N/M(C)    Impairment of goodwill     and other non-     amortizing intangible     assets                            (12.3)   (5,489.6)     N/M    Income from operations,     before impairment                 163.0       141.6     15.1%    Income/(loss) from     continuing operations,     net of tax (a)                    298.3    (4,778.2)     N/M    Property EBITDA                    443.1       478.0     (7.3)%    Adjusted EBITDA (b)                418.6       453.6     (7.7)%    (a) Due to the January 1, 2009, adoption of a recent accounting        pronouncement, certain 2008 amounts have been recast to conform        to the 2009 presentation throughout this document.    (b)  Does not include the pro forma effect of yet-to-be-realized cost         savings from our profitability program.    (c)  "N/M" is used to reference a variance compared to a prior period         that is Not Meaningful. This reference is used in several tables         throughout this document.                         Successor         Predecessor                         ---------         -----------                            Jan. 28, 2008  Jan. 1, 2008  Combined     (In          Full Year     Through       Through     Full Year  Increase/     millions)      2009    Dec. 31, 2008  Jan. 27, 2008   2008    (Decrease)    ----------   ---------  -------------  ------------- --------- ----------    Net     revenues     $8,907.4    $9,366.9        $760.1     $10,127.0    (12.0)%    Loss     from     operations     (607.8)   (4,237.5)        (36.8)     (4,274.3)    85.8%    Impairment     of     goodwill     and     other     non-     amortizing     intangible     assets       (1,638.0)   (5,489.6)            -      (5,489.6)     N/M                          Income/     (loss)     from     operations     before     impairment    1,030.2     1,252.1         (36.8)      1,215.3    (15.2)%    Income/     (loss)     from     continuing     operations,     net     of     tax             846.4    (5,174.7)        (99.4)     (5,274.1)     N/M    Property     EBITDA        2,153.6     2,244.9         171.2       2,416.1    (10.9)%    Adjusted     EBITDA (a)    2,070.7     2,183.8         172.0       2,355.8    (12.1)%    (a)  Does not include the pro forma effect of yet-to-be-realized cost         savings from our profitability program.

On January 28, 2008, Harrah's Entertainment was acquired by affiliates of Apollo Global Management, LLC and TPG Capital, LP. Accordingly, we have separated our 2008 historical financial results in the presentations included herein between the Successor period from January 28, 2008, through December 31, 2008, and the Predecessor period from January 1, 2008, through January 27, 2008. However, we have also combined the Successor and Predecessor periods' results for the year ended December 31, 2008, because company management believes doing so provides a meaningful presentation and a more appropriate comparison to 2009 results.

Property earnings before interest, taxes, depreciation and amortization (Property EBITDA) and Adjusted EBITDA are measurements not in accordance with Generally Accepted Accounting Principles (GAAP) but are commonly used in the gaming industry as measures of performance and as bases for valuation of gaming companies and, in the case of Adjusted EBITDA, as a measure of compliance with certain debt covenants. Reconciliations of Property EBITDA to Net income/(loss) and of Net income to Last Twelve Months (LTM) Adjusted EBITDA are attached to this release.

The company's 2009 fourth-quarter revenues fell 7.9 percent to $2,099.1 million from $2,278.4 million in the 2008 fourth quarter, primarily due to the impact of the recession on customers' discretionary spending and reduced aggregate demand, which impacted average daily room rates. Income from operations was $150.7 million, compared with a loss from operations of $5,348.0 million in the 2008 fourth quarter. Included in the fourth-quarter 2009 income from operations was a charge of $12.3 million for impairment of non-amortizing intangible assets. Included in the fourth-quarter 2008 loss from operations were $5,489.6 million of charges for impairments of goodwill and other non-amortizing intangible assets. The income from continuing operations, net of tax, for the 2009 fourth quarter was $298.3 million, compared with a loss of $4,778.2 million in the year-ago quarter.

Revenues for the full year of 2009 declined 12.0 percent to $8,907.4 million from $10,127.0 million in the full year of 2008. The loss from operations was $607.8 million in the 2009 full year, compared with a loss from operations of $4,274.3 million in 2008. Income from continuing operations, net of tax, for the full year of 2009 was $846.4 million, compared with loss from continuing operations, net of tax, of $5,274.1 million in 2008. Income from continuing operations, net of tax, for the full year 2009, includes i) impairment charges for goodwill and non-amortizing intangible assets totaling $1,638.0 million ($1,559.6 million net of taxes); and ii) gains related to the early extinguishment of debt of $4,965.5 million ($3,006.5 million net of taxes). Loss from continuing operations, net of tax, for the full year 2008, included impairment charges for goodwill and non-amortizing intangible assets totaling $5,489.6 million ($5,025.6 million net of taxes).

During the 2009 fourth quarter, Harrah's wholly owned subsidiary Harrah's Operating Company, Inc. (HOC) borrowed $1 billion in incremental term loans under its senior secured credit facilities and used a majority of the net proceeds to repay a portion of indebtedness under the Company's secured credit facilities. Also during the 2009 fourth quarter, Harrah's Entertainment purchased $948 million face value of outstanding debt related to our real estate loans for approximately $237 million, recognizing a pre-tax gain on this transaction of $688.1 million, net of transaction costs.

On January 16, 2010, Harrah's assumed management of the 2,500-room hotel at the Planet Hollywood Resort & Casino on the Las Vegas Strip. On February 18, 2010, the Nevada Gaming Commission granted final approval for Harrah's to assume ownership and management of the resort's casino and related facilities; the transaction closed February 19. Harrah's pursued the Planet Hollywood deal because of the property's proximity to Harrah's other Strip resorts, its recent upgrades and its strong brand name.

"The Planet Hollywood transaction added a new brand to our product offering in Las Vegas on attractive terms," said Gary Loveman, Harrah's chairman, president and chief executive officer. "We believe implementation of our operations-management and guest-service systems and Total Rewards customer-loyalty program will enable us to improve the resort's performance. The financing activities that boosted our liquidity during 2009 have allowed us to complete this transaction and consider others that we believe offer significant long-term growth potential.

"The impact of the economy on consumers' willingness to spend continued to affect our results throughout 2009," Loveman said. "The cost-reduction programs implemented at the end of 2008 helped mitigate the economy's impact on our operating margins last year."

A substantial portion of the debt of Harrah's Entertainment's consolidated group is issued by HOC. Therefore, the company believes it is meaningful to also provide information pertaining to the results of operations of HOC. The information for HOC assumes that a post-January 2008 swap of certain properties between HOC and Harrah's Entertainment that was consummated during the 2008 second quarter actually occurred on January 1, 2008.

    HARRAH'S OPERATING COMPANY, INC.                                            Fourth Quarter     Percent                                            --------------     Increase/    (In millions)                          2009        2008   (Decrease)                                           ----        ----   ----------    Net revenues                        $1,631.5    $1,752.8     (6.9)%    Income/(loss) from operations          124.5    (3,632.0)      N/M    Impairment of goodwill and other     non-amortizing intangible     assets                                (12.3)   (3,745.2)      N/M    Income from operations before     impairment                            136.8       113.2      20.8%    Loss from continuing operations,     net of tax                           (107.3)   (2,976.1)    96.4%    Property EBITDA                        332.7       346.1     (3.9)%    Adjusted EBITDA (a)                    317.2       324.0     (2.1)%    (a)  Does not include the pro forma effect of yet-to-be-realized cost         savings from our profitability program.                         Successor          Predecessor                         ---------          -----------                             Jan. 28, 2008  Jan. 1, 2008  Combined                      Full       Through       Through       Full     Percent                     Year       Dec. 31,      Jan. 27,      Year    Increase/    (In millions)    2009         2008          2008        2008   (Decrease)    -------------    ----    -------------  ------------ --------- ----------    Net     revenues      $6,873.2     $7,117.7       $577.5     $7,695.2   (10.7)%    Income/     (loss)     from     operations      (369.6)    (2,836.4)       (43.2)    (2,879.6)   87.2%    Impairment     of     goodwill     and other     non-     amortizing     intangible     assets        (1,178.9)    (3,745.2)           -     (3,745.2)    N/M    Income/     (loss)     from     operations     before     impairment       809.3        908.8        (43.2)       865.6    (6.5)%    Income/     (loss)     from     continuing     operations,     net of tax       626.3     (3,390.5)      (106.2)    (3,496.7)    N/M    Property     EBITDA         1,597.2      1,590.4        109.6      1,700.0    (6.0)%    Adjusted     EBITDA (a)     1,550.6      1,511.9        143.0      1,654.9    (6.3)%    (a)  Does not include the pro forma effect of yet-to-be-realized cost         savings from our profitability program.

Summaries of results by region follow:

Las Vegas Region

While hotel occupancy remained strong at approximately 90 percent, 2009 fourth-quarter and full-year revenues declined in the Las Vegas Region from the 2008 periods due to weakness in the group travel business, lower spend per visitor and lower average daily room rates. The 2009 fourth-quarter and full-year Income/(loss) from operations improved compared with respective 2008 results due in part to reduced impairment charges in 2009. Prior to consideration of impairment charges, 2009 fourth-quarter income from operations improved slightly from the 2008 fourth quarter due to cost-saving initiatives, while full-year income from operations declined from 2008 due to lower visitor spend and lower average daily room rates.

    HARRAH'S ENTERTAINMENT, INC.    Las Vegas Region                                         Fourth Quarter       Percent                                          --------------      Increase/    (In millions)                        2009       2008    (Decrease)                                         ----       ----    ----------    Net revenues                       $649.2     $721.4       (10.0)%    Income/(loss) from operations        97.3   (2,485.3)        N/M    Impairment of goodwill and other     non-amortizing intangible assets       -   (2,579.4)        N/M    Income from operations before     impairment                          97.3       94.1         3.4%    Property EBITDA                     174.6      189.6        (7.9)%                         Successor          Predecessor                         ---------          -----------                             Jan. 28, 2008  Jan. 1, 2008  Combined                      Full       Through       Through       Full     Percent                     Year       Dec. 31,      Jan. 27,      Year    Increase/    (In millions)    2009         2008          2008        2008   (Decrease)    -------------    ----    -------------  ------------ --------- ----------    Net revenues   $2,698.0    $3,000.6        $253.6     $3,254.2   (17.1)%    (Loss)/income     from     operations      (681.0)   (1,988.0)         51.9     (1,936.1)   64.8%    Impairment of     goodwill and     other non-     amortizing     intangible     assets        (1,130.9)   (2,579.4)            -     (2,579.4)    N/M    Income from     operations     before     impairment       449.9       591.4          51.9        643.3   (30.1)%    Property     EBITDA           756.8       905.4          76.0        981.4   (22.9)%    Las Vegas Region properties include Bally's Las Vegas, Bill's Gamblin'    Hall & Saloon, Caesars Palace, Flamingo Las Vegas, Harrah's Las Vegas,    Imperial Palace, Paris and Rio.    HARRAH'S OPERATING COMPANY, INC.    Las Vegas Region                                          Fourth Quarter     Percent                                               --------------     Increase/    (In millions)                         2009       2008   (Decrease)                                          ----       ----   ----------    Net revenues                         $307.5     $322.4     (4.6)%    Income/(loss) from operations          49.2   (1,076.4)     N/M    Impairment of goodwill and other     non-amortizing intangible assets         -   (1,121.4)     N/M    Income from operations before     impairment                            49.2       45.0      9.3%    Property EBITDA                        82.2       76.1      8.0%                         Successor          Predecessor                         ---------          -----------                             Jan. 28, 2008  Jan. 1, 2008  Combined                      Full       Through       Through       Full     Percent                     Year       Dec. 31,      Jan. 27,      Year    Increase/    (In millions)    2009         2008          2008        2008   (Decrease)    -------------    ----    -------------  ------------ --------- ----------    Net     revenues      $1,215.1    $1,318.9        $118.5    $1,437.4     (15.5)%     (Loss)/     income     from     operations      (481.1)     (869.3)         29.7      (839.6)     42.7%    Impairment     of goodwill     and other     non-     amortizing     intangible     assets          (671.8)   (1,121.4)            -    (1,121.4)      N/M      Income     from     operations       190.7       252.1          29.7       281.8     (32.3)%     before     impairment    Property     EBITDA           317.1       364.6          38.1       402.7     (21.3)%    Las Vegas Region properties include Bally's Las Vegas, Bill's Gamblin'    Hall & Saloon, Caesars Palace, and Imperial Palace.

Atlantic City Region

Reduced visitation and customer spend per trip unfavorably impacted Atlantic City Region revenues during both the 2009 fourth quarter and full year. For the fourth-quarter and full year of 2009, income from operations before impairment charges was lower than the prior year as cost-saving initiatives were unable to offset reduced revenues and increased marketing expenses, which also contributed to the 2009 fourth-quarter and full-year Property EBITDA declines.

    HARRAH'S ENTERTAINMENT, INC.    Atlantic City Region                                               Fourth Quarter     Percent                                               --------------    Increase/    (In millions)                              2009       2008   (Decrease)                                               ----       ----   ----------    Net revenues                             $467.4     $492.8      (5.2)%    Income/(loss) from operations              22.3     (669.4)      N/M    Impairment of goodwill and other     non-amortizing intangible assets             -     (699.9)      N/M    Income from operations before     impairment                                22.3       30.5     (26.9)%    Property EBITDA                            67.1       86.7     (22.6)%                         Successor          Predecessor                         ---------          -----------                             Jan. 28, 2008  Jan. 1, 2008  Combined                      Full       Through       Through       Full     Percent                     Year       Dec. 31,      Jan. 27,      Year    Increase/    (In millions)    2009         2008          2008        2008   (Decrease)    -------------    ----    -------------  ------------ --------- ----------    Net revenues    $2,025.9    $2,156.0       $160.8    $2,316.8    (12.6)%    Income/     (loss) from     operations         28.3      (415.4)        18.7      (396.7)     N/M    Impairment of     goodwill and     other non-     amortizing     intangible     assets           (178.7)     (699.9)           -      (699.9)     N/M    Income from     operations     before     impairment        207.0       284.5         18.7       303.2    (31.7)%    Property     EBITDA            400.3       484.0         36.4       520.4    (23.1)%    Atlantic City Region properties include Bally's Atlantic City, Caesars    Atlantic City, Harrah's Atlantic City, Harrah's Chester and Showboat    Atlantic City.    HARRAH'S OPERATING COMPANY, INC.    Atlantic City Region                                              Fourth Quarter     Percent                                              --------------     Increase/                                              2009       2008   (Decrease)    (In millions)                             ----       ----   ----------    Net revenues                             $352.1     $374.8     (6.1)%    Income/(loss) from operations              14.2     (493.1)     N/M    Impairment of goodwill and other     non-amortizing intangible assets             -     (514.5)     N/M    Income from operations before     impairment                                14.2       21.4    (33.6)%    Property EBITDA                            44.8       61.7    (27.4)%                         Successor          Predecessor                         ---------          -----------                             Jan. 28, 2008  Jan. 1, 2008  Combined                      Full       Through       Through       Full     Percent                     Year       Dec. 31,      Jan. 27,      Year    Increase/    (In millions)    2009         2008          2008        2008   (Decrease)    -------------    ----    -------------  ------------ --------- ----------    Net revenues   $1,528.1     $1,650.8       $125.8    $1,776.6    (14.0)%    (Loss)/income     from     operations       (37.2)      (308.7)         8.0      (300.7)    87.6%    Impairment of     goodwill and     other non-     amortizing     intangible     assets          (178.7)      (514.5)           -      (514.5)     N/M                         Income from     operations     before     impairment       141.5        205.8          8.0       213.8    (33.8)%    Property     EBITDA           276.0        348.8         21.9       370.7    (25.5)%    Atlantic City Region properties include Bally's Atlantic City, Caesars    Atlantic City, Harrah's Chester and Showboat Atlantic City.

Louisiana/Mississippi Region

Reduced visitation led to declines in 2009 fourth-quarter and full-year revenues. The 2008 full year was impacted by construction disruptions related to the re-branding and remodeling of Harrah's Tunica. Also included in income from operations for the full year 2008 were insurance proceeds of $185.4 million representing final settlement of claims related to 2005 hurricane damages.Prior to consideration of the impairment charges for both years and the insurance proceeds, income from operations improved slightly year over year due to cost-saving initiatives.

    HARRAH'S ENTERTAINMENT, INC./HARRAH'S OPERATING COMPANY, INC.    Louisiana/Mississippi Region                                                  Fourth Quarter     Percent                                                    --------------     Increase/                                                  2009       2008   (Decrease)    (In millions)                                 ----       ----   ----------    Net revenues                                 $285.4     $329.9    (13.5)%    Income/(loss) from operations                  30.6     (299.7)     N/M    Impairment of goodwill and other     non-amortizing intangible assets                 -     (328.9)     N/M    Income from operations before     impairment                                    30.6       29.2      4.8%    Property EBITDA                                55.9       58.3     (4.1)%                         Successor          Predecessor                         ---------          -----------                             Jan. 28, 2008  Jan. 1, 2008  Combined                      Full       Through       Through       Full     Percent                     Year       Dec. 31,      Jan. 27,      Year    Increase/    (In millions)    2009         2008          2008        2008   (Decrease)    -------------    ----    -------------  ------------ --------- ----------    Net revenues   $1,245.2    $1,340.8        $106.1    $1,446.9    (13.9)%    Income from     operations       181.4        28.3          10.1        38.4      N/M    Impairment     of goodwill     and other     non-     amortizing     intangible     assets            (6.0)     (328.9)            -      (328.9)     N/M    Income from     operations     before     impairment       187.4       357.2          10.1       367.3    (49.0)%    Property     EBITDA           292.6       276.2          18.6       294.8     (0.7)%    Louisiana/Mississippi Region properties include Grand Casino Biloxi,    Harrah's New Orleans, Harrah's Tunica, Horseshoe Bossier City,    Horseshoe Tunica, Louisiana Downs and Tunica Roadhouse (formerly known    as Sheraton Tunica).

Iowa/Missouri Region

Fourth-quarter and full-year 2009 revenues declined from 2008 as the weak economy continued to adversely impact guest visitation. Fourth-quarter 2009 revenues and income from operations were also impacted by severe winter storms. However, income from operations before impairments for the full-year 2009 increased because of cost-saving initiatives.

    HARRAH'S ENTERTAINMENT, INC./HARRAH'S OPERATING COMPANY, INC.    Iowa/Missouri Region                                               Fourth Quarter     Percent                                                --------------     Increase/                                               2009       2008   (Decrease)    (In millions)                              ----       ----   ----------    Net revenues                             $179.5     $189.6      (5.3)%    Income/(loss) from operations              41.4       (4.6)      N/M    Impairment of goodwill and other     non-amortizing intangible assets             -      (49.0)      N/M    Income from operations before     impairment                                41.4       44.4      (6.8)%    Property EBITDA                            54.3       58.1      (6.5)%                         Successor          Predecessor                         ---------          -----------                             Jan. 28, 2008  Jan. 1, 2008  Combined                      Full       Through       Through       Full     Percent                     Year       Dec. 31,      Jan. 27,      Year    Increase/    (In millions)    2009         2008          2008        2008   (Decrease)    -------------    ----    -------------  ------------ --------- ----------    Net     revenues        $756.6      $727.0        $55.8       $782.8     (3.3)%    Income     from     operations       187.5       108.2          7.7        115.9     61.8%    Impairment     of     goodwill     and other     non-     amortizing     intangible     assets               -       (49.0)           -        (49.0)      N/M    Income     from     operations     before     impairment       187.5       157.2          7.7        164.9      13.7%    Property     EBITDA           238.4       206.1         13.0        219.1       8.8%    Iowa/Missouri Region properties include Harrah's Council Bluffs, Harrah's    North Kansas City, Harrah's St. Louis and Horseshoe Council Bluffs.

Illinois/Indiana Region

Revenues in the region declined in the fourth quarter of 2009 from the 2008 fourth quarter, due to the continuing impact of the weak economy and severe winter weather. For the full year 2009, revenues were relatively unchanged, due to increased revenues related to the 2008 expansion of the Horseshoe Hammond property, which offset the revenue declines at other properties in the region. Income from operations before impairment charges improved in the fourth quarter 2009 from the year-earlier period due to cost-saving initiatives, combined with the 2008 impact of a property tax expense adjustment. Full-year income from operations before impairment charges improved in 2009 from 2008 due to cost-saving initiatives.

    HARRAH'S ENTERTAINMENT, INC./HARRAH'S OPERATING COMPANY, INC.    Illinois/Indiana Region                                                  Fourth Quarter     Percent                                                  --------------    Increase/    (In millions)                                2009       2008    (Decrease)                                                 ----       ----    ----------    Net revenues                                $271.2     $294.3      (7.8)%    Income/(loss) from operations                 29.9     (597.2)      N/M    Impairment of goodwill and other     non-amortizing intangible assets                -     (617.1)      N/M    Income from operations before     impairment                                   29.9       19.9      50.3%    Property EBITDA                               51.8       44.7      15.9%                         Successor          Predecessor                         ---------          -----------                             Jan. 28, 2008  Jan. 1, 2008  Combined                      Full       Through       Through       Full     Percent                     Year       Dec. 31,      Jan. 27,      Year    Increase/    (In millions)    2009         2008          2008        2008   (Decrease)    -------------    ----    -------------  ------------ --------- ----------    Net revenues    $1,172.3    $1,098.7       $85.5      $1,184.2    (1.0)%    Income/     (loss) from     operations        (35.4)     (505.9)        8.7        (497.2)   92.9%    Impairment of     goodwill and     other non-     amortizing     intangible     assets           (180.7)     (617.1)          -        (617.1)    N/M    Income from     operations     before     impairment        145.3       111.2         8.7         119.9    21.2%    Property     EBITDA            240.5       195.4        13.6         209.0    15.1%    Illinois/Indiana properties include Harrah's Joliet, Harrah's Metropolis,    Horseshoe Hammond and Horseshoe Southern Indiana.

Other Nevada Region

Revenues for the Other Nevada Region declined in the 2009 fourth quarter and full year from the respective periods of 2008 due to lower guest visitation and lower visitor spend per trip. For the 2009 fourth quarter and full year, cost-saving initiatives implemented throughout 2009 partially offset the earnings impact of the revenue declines. During the 2009 fourth quarter, we announced the closure of Bill's Casino in Lake Tahoe effective January 2010.

    HARRAH'S ENTERTAINMENT, INC.    Other Nevada                                       Fourth Quarter       Percent                                        --------------      Increase/                                       2009       2008    (Decrease)    (In millions)                      ----       ----    ----------    Net revenues                       $102.0    $115.0     (11.3)%    Income/(loss) from operations        (1.2)   (315.6)     99.6%    Impairment of goodwill and other     non-amortizing intangible assets    (4.0)   (318.5)      N/M    Income from operations before     impairment                           2.8       2.9      (3.4)%    Property EBITDA                      14.9      16.0      (6.9)%                         Successor          Predecessor                         ---------          -----------                             Jan. 28, 2008  Jan. 1, 2008  Combined                      Full       Through       Through       Full     Percent                     Year       Dec. 31,      Jan. 27,      Year    Increase/    (In millions)    2009         2008          2008        2008   (Decrease)    -------------    ----    -------------  ------------ --------- ----------    Net revenues    $472.6       $534.0         $38.9      $572.9     (17.5)%    Income/(loss)     from     operations       47.3       (255.9)          0.5      (255.4)      N/M    Impairment of     goodwill and     other non-     amortizing     intangible     assets           (4.0)      (318.5)            -      (318.5)      N/M    Income from     operations     before     impairment       51.3         62.6           0.5        63.1     (18.7)%    Property     EBITDA          101.7        109.0           4.5       113.5     (10.4)%    Other Nevada properties include Bill's Casino, Harrah's Lake    Tahoe, Harrah's Laughlin, Harrah's Reno and Harvey's Lake Tahoe.    HARRAH'S OPERATING COMPANY, INC.    Other Nevada                                        Fourth Quarter     Percent                                         --------------     Increase/    (In millions)                       2009       2008   (Decrease)    -------------                       ----       ----   ----------    Net revenues                       $70.9      $79.7      (11.0)%    Income/(loss) from operations       (3.6)    (219.0)      98.4%    Impairment of goodwill and other     non-amortizing intangible assets   (4.0)    (217.5)       N/M    Income/(loss) from operations     before impairment                   0.4       (1.5)       N/M    Property EBITDA                      7.6        6.4       18.8%                         Successor          Predecessor                         ---------          -----------                             Jan. 28, 2008  Jan. 1, 2008  Combined                      Full       Through       Through       Full     Percent                     Year       Dec. 31,      Jan. 27,      Year    Increase/    (In millions)    2009         2008          2008        2008   (Decrease)    -------------    ----    -------------  ------------ --------- ----------    Net revenues     $332.5      $379.5         $26.8      $406.3     (18.2)%    Income/(loss)     from     operations        26.3      (178.5)         (1.9)     (180.4)      N/M    Impairment of     goodwill and     other non-     amortizing     intangible     assets            (4.0)     (217.5)            -      (217.5)      N/M                              Income/(loss)     from     operations     before     impairment        30.3        39.0          (1.9)       37.1     (18.3)%    Property     EBITDA            60.7        66.7           1.2        67.9     (10.6)%    Other Nevada properties include Bill's Casino, Harrah's Lake Tahoe,    Harrah's Reno, and Harvey's Lake Tahoe.

Managed/International/Other

Revenues rose in the 2009 fourth quarter due to increased visitation combined with higher customer spend per trip at our international properties. Revenues for the 2009 full year declined from 2008 as result of adverse movements in exchange rates. Loss from operations before impairment charges for the 2009 fourth quarter im